Local Communities’ Social Needs Assessment and Adaptability by Multinational Companies Venturing into African Market : a Case Study of Epiroc AB

• Main Authors: Augustine, Tumwebaze, Augusto-Swerup, Paula
• Format: Others
• Language: English
• Published: Högskolan Dalarna, Företagsekonomi 2020
• Subjects: Local communities; social needs; assessment; adaptability; multinational companies; corporate social responsibility; Africa; stakeholders; investment; Business Administration; Företagsekonomi
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:du-34360

Purpose – The purpose of this study is to explore the ways multinational companies implement CSR initiatives adapted to the social needs of local communities in African countries. The paper will highlight local communities’ social needs and the appropriateness of CSR initiatives to respond to them, performed by multinational companies, using Epiroc AB as a case study. Methodology - This research was conducted using a qualitative research approach, applying a case study strategy, and empirically inquiring, seeking new insights for a deeper understanding of phenomena. The authors carried out three formal semi-structured interviews, two conducted to relevant CSR employees, and one from a community member. The authors also used secondary data by reviewing published documents containing information on local communities’ social needs in Africa. Findings – Most demanding areas of CSR to be considered by the MCN are related to poverty alleviation (food, health, and shelter) but, to avoid dependency, these need to be coupled with a capacity-building (education/training) and/or access to infrastructure (drinkable water, electricity, communications). The MNC uses specific mechanisms to assess LCSN, called systematic assessments and on-sight assessments. MNCs tend to adopt locallydriven, globally-driven, or trend-driven CSR initiatives in its subsidiary African countries to build a long term business sustainability and create a balance amongst stakeholders in the host country. Originality – An assessment of local communities' social needs and adaptability by Multinational Companies venturing into the African Market is introduced and developed by the authors. Paper type – Qualitative/Exploratory paper.